In a strategy shift, Fed officials are now neither looking to tighten nor to ease monetary policy as they prepare for the meeting June 21 and 22 of the FOMC. Jon Hilsenrath has details.

This transcript has been automatically generated and may not be 100% accurate.

... I ... don't let that the Reserve Bank ... related item sold all of the same position they were neo andDow ... altered Journal John Eales unwrap this year and has a preview of next week's FOMC meeting John ... the STS Severson again I ... couldn't tell me what was the Fed thinking for next week in meeting the FOMC what's on their minds right so ... note that the Fed is looking a very complicated environment right now I've growth has clearly slowed down in the first half of the year ... at the same time as restart with today's inflation numbers core inflation ... has picked up their kind of Hancock ... you know as much as they might like to try to find some way to stimulate ... more growth that gotta worry about inflation not turning getting closer to their objective so ... they're not doing anything they're on hold as far as the eye can see right now ... John and Julie for yes or no ... no it's not going to happen I at least in the short term ... deal because of changing the inflation picture ... when they did QE two last year ... they were worried about inflation core inflation headline inflation everything was coming down ... inflation has picked up and so they just don't think the environment is right for doing more ... asset purchases has been done over the last six months ... apart from the inflation perform inflation seen ... as for the economy goes did they think ... that what what therapy about the economy the second half ... well so the door on the one hand it ... did that officials believe that a lot of what happened in the last few months is transitory we keep using that word over and over again ... oil prices spike ever consumers oil prices coming down a bit now ... Japan had supply shocks that's come about one of the things a lot of people are talking to me about is that ... it looks like auto production to ramp up in the third quarter said they didn't really get more growth ... and lessons raised unless inflation in the second half the year ... are optimistic about that ... but at the same time what you would get that twenty twelve ... they might be thinking that they're thinking that maybe there were expecting a little bit too much of the economy ... you know to be looking for four percent growth in May when McCabe get point four percent growth ... so they're getting a little nervous about the medium term growth outlook ... and jot job but doesn't fit in with you know what bullets ... are in their arsenal of that in trying to just simply ... chalk up the heat the economy ... well they have a few things they could do we talk about QE three they could go out and buy more securities if they want ... to ... try to push up crop prices pushed down intolerable down long-term interest rates ... I had that on Wednesday that there's other things they could do one of the most important things is ... the guidance did they get the market what's happened with short-term interest rates but ... the Bass Strait and is convicted they have to keep rates low for a long time ... the thinking is ... that provides mobile stimulus because investors realize that ... they cannot have a free run with low rates for that much longer ... the could also get some assurances to the market that the market to sell any of their long-term securities for some time ... that also could use markets and health and and help the economy ... so ... that you have boats in their arsenal be an important question is whether they want you to ... the point right now is that ... they have bullets and they are wanting them because of what happened with inflation and last month ... how much is just in relation to visit the Dijon moment from a year ago ... last year the Fed is trying to get out their hand was forced to get Kiwi to I don't think their hands can be forced to do something ... there could be forced to do something they're there to be a tough spot ... if we'll get through this soft patch in the economy if the economy still going ... at a two percent rate in the third and fourth quarter ... and core inflation is continuing to run at two percent or higher rate there to be a very tough spot ... you know they have a dual mandate of maximum employment ... and sustainable prices but you know when it comes down to it ... they're not willing to sacrifice the stable price part of that they're not willing to push inflation ... wave has two percent for a long period of time ... so they might be in a position where they're going after state ... with an ... unemployment you know we've done everything we can and there's not much more we can do to bring unemployment down any faster ... that they're a nightmare scenario and out ... you know that that dream to getting a little scarier it now ... miner John think slot for joining us